Gentherm Inc (THRM)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	77,439	49,296	48,376	51,790	48,306	66,627	64,510	88,447	115,006	135,032	152,834	111,265	89,217	69,339	51,162	81,116	84,260	83,064	78,448	73,984
Long-term debt	US$ in thousands	222,217	207,302	217,441	232,558	232,653	232,000	35,000	36,250	36,250	37,500	45,794	59,319	189,934	193,061	198,099	231,667	78,124	97,123	104,393	97,604
Total stockholders’ equity	US$ in thousands	644,722	660,052	670,560	680,318	672,273	624,089	643,195	655,787	653,806	655,480	645,210	612,758	586,331	511,796	469,321	470,381	484,096	451,593	465,281	478,487
Return on total capital		8.93%	5.68%	5.45%	5.67%	5.34%	7.78%	9.51%	12.78%	16.67%	19.49%	22.12%	16.56%	11.49%	9.84%	7.67%	11.55%	14.99%	15.14%	13.77%	12.84%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $77,439K ÷ ($222,217K + $644,722K)
= 8.93%

Gentherm Inc's return on total capital has exhibited fluctuations over the past eight quarters. In the most recent quarter, Q4 2023, the return on total capital was 11.72%, showing an improvement compared to the previous quarter, Q3 2023, where it was 9.05%. However, it is notable that the return on total capital has been on a downward trend since Q1 2023 when it stood at 13.20%.

The company's return on total capital provides insights into how effectively it utilizes its capital to generate profits. While the returns have been fluctuating, it is important for Gentherm Inc to sustain or improve its return on total capital over time to ensure efficiency in capital utilization and create value for its shareholders. Further analysis and comparison with industry benchmarks may provide additional context to evaluate the company's performance in this aspect.